Unions condemn liberalisation of postal service

UK: Unions condemn liberalisation of postal service

Unions have condemned as "ill advised" a decision to open the postal services market up to full competition from next January.
Industry regulator Postcomm said total liberalisation would be introduced 15 months earlier than planned.
Royal Mail said it was ready for the introduction of increased competition, and consumer groups welcomed moves to extend choice.
But the Communication Workers' Union said foreign postal companies would be "rubbing their hands in glee."
From 2006 licensed firms will be able to collect, transport and deliver letters, announced the regulator.
"After three months of consultation, a substantial majority gave the thumbs-up to competition," said Nigel Stapleton, chairman of Postcomm.
"We can now look forward to a more innovative and efficient postal industry focussed on providing customers with the services they want, rather than being told by a monopolist what services they can - and cannot - have.
"This is only the first step in a process which the commission hopes will eventually see market forces replace regulation as the main driver of an efficient and effective mail industry."
Universal service
Welcoming the move, consumer organisation Postwatch said greater competition would not undermine universal services.
"The main threat to this service is an inefficient Royal Mail," said chairman Peter Carr.
"Liberalisation is good for Royal Mail, as it will maintain the pressure to deliver quality of service to customers, improve efficiency and drive innovation."
Royal Mail chief executive Adam Crozier said greater competition should be matched with moves to ensure there are no "unfair restrictions" on the company.
"What we now want to see is a successful transition to full competition," said Crozier.
"For customers, that means proper safeguards to avoid a damaging free-for-all and to ensure that all mail is secure, and that it is clear who has collected and delivered it and who is responsiblefor sorting out problems.
"Royal Mail wants to be able to compete fully and fairly from the start.
"We're determined to earn business in the new market so that we can continue to finance the one-price-goes-anywhere universal service - which remains at the heart of what we do.
"We can only do this if the handcuffs come off."
Disadvantage
Billy Hayes, general secretary of the Communication Workers Union, said foreign rivals, particularly in Holland and Germany, would be welcoming the "ill-advised and regrettable decision".
"At a stroke they are being allowed the opportunity to compete head-on with Royal Mail while still enjoying the benefit of strong protection in their home markets," he said.
"We all know and accept that postal liberalisation is coming - but the CWU simply cannot understand why a British regulator seems so determined to place the nation's postal service at a competitive disadvantage to rivals that will not be subject to the same challenge in their own home markets.
"The sad thing is that British consumers are the ones who could easily end up suffering as a result of this macho posturing by Postcomm."

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